Breaking News! The Rowe Cos. File Chapter 11

September 18, 2006  by in UnCategorized   

By Home Furnishings Business in Upholstery on September 2006 The Rowe Cos., along with subsidiaries upholstery producer Rowe Furniture and retailer Storehouse, have filed for Chapter 11 protection.

The company said the move will allow Rowe to “complete its ongoing restructuring plans and initiatives including the sale of Storehouse, which will enable Rowe to focus on its core manufacturing business.”

In documents filed in the U.S. Bankruptcy Court in the Eastern District of Virginia, The Rowe Cos. listed assets of between $50 million and $100 million with debts of between $10 million and $50 million. Rowe Furniture’s listed assets were the same, and Storehouse listed assets of between $10 million and $50 million with debts of between $10 million and $50 million.

“Rowe Furniture has been one of the country’s leading manufacturers of upholstered furniture for decades, said Jerry Birnbach, president and chief executive. “Our upholstered furniture has been famous for its high quality and craftsmanship and we have employed the finest and most valuable group of associates who have maintained this tradition with utter dedication. We expect that the restructuring steps we are taking, while difficult, will ensure the future of our enterprise and our people.”

Subject to court approval, Rowe will continue to operate in the normal course of business. The company has also asked the court to permit it to continue to maintain payroll and employee benefits.

The top 20 unsecured creditors listed in the documents for Rowe Furniture, include: Carpenter Co. for $793,250; Quaker Fabric for $727,810; Hickory Springs for $653,373; Bluelinx Corp. for $389,872; Morgan Fabrics for $320,906; MS Warehouse for $297,836; Richloom Fabrics for $212,859; Tietex International for $210,751; Penske Logistics for $185,371; Barrow Inds. for $182,713; Hartford Financial Services for $176,639.36; Pacific Coast Feather Cushion Co. for $164,757; Diversified Packaging Corp. for $146,872; Quality Sample Co. for $133,276; Mastercraft Fabrics for $124,262; Gregory Logistic for $115,472; Smurfit Stone Container for $111,640; Furniture Transportations Systems for $108,863; Universal Spring Co. for $107,262; and FedEx for $96,799.

The top 20 unsecured creditors listed for Storehouse are: d-Scan for $977,983; Shermag for $825,091; DeCoro for $428,304; Spencer Press for $413,072; Buying & Design, USA for $386,072; Hartford Financial Systems for $366,508.40; D.C.Ecker Construction for $362,894; Ryder Transportation for $297,881; Mitchell Gold for $279,881; Four Hands for $239,976; Barcalounger for $204,286; Carolina Mattress Guild for $108,749; Padma’s Plantation for $144,819; Curvet USA for $141,973; Directions for $133,946; Purnell Furniture Services for $126,474; Sitcom for $125,761; Midtjydsk Mobelfabrik for $122,442; Sam Moore Furniture for $122,429; and Chase Paymentech for an unknown amount.